After the Legislative Assembly ratified the country's accession to the Organization for Economic Cooperation and Development, the business sector is of the opinion that this will help consolidate the institutional reforms needed to make the State more efficient.
The Assembly informed that by approving in the second debate the bill 22.187, which contains the agreement on the terms of accession, the deputies gave the green light to Costa Rica's accession to the Organization for Economic Cooperation and Development (OECD).
As a result of the blockade that has been in place since July 2020 on the entry of animal products from Costa Rica into the Panamanian market, Costa Rican exports to Panama are reported to have fallen and companies such as Dos Pinos are reporting losses in the millions.
The trade conflict began when Panama informed the National Animal Health Service (SENASA), an agency of Costa Rica's Ministry of Agriculture and Livestock (MAG), of the decision not to extend export authorization to a list of previously authorized Costa Rican establishments that have been trading in the Panamanian market for many years.
The time and cost of maritime routes between Costa Rica and China, and the capacity that the food industry develops to take advantage of existing opportunities, are factors that in the coming years will influence the evolution of the FTA signed between the two countries.
Ten years after the entry into force of the Free Trade Agreement between China and Costa Rica, Costa Rican authorities assure that they are in a continuous negotiation process involving the National Animal Health Service (Senasa) and the State Phytosanitary Service (SFE).
Because of the lower-than-projected volume of cargo shipped on the September and October services, the maritime route between Port Moin and Shanghai was suspended.
One year after the start-up of operations of the maritime terminal in Costa Rica, businessmen recognize that efficiency has improved, but insist that there should be a reduction in tariffs.
Costa Rican exporters are negotiating to change the frequency of the maritime route between Port Moin and Shanghai from monthly to weekly from February 2020.
In Costa Rica, exporters and businessmen of the tourism sector are concerned about the decreasing trend that in recent months has reported the exchange rate, which on July 18 was quoted at ¢575.7 per dollar.
Official figures report that between early February and mid-July of this year, there has been a fall of up to 38 colones per dollar, as the average rate in the Monex wholesale market fell from ¢613.87 to ¢575.69.
In Costa Rica, exporters ask the Central Bank to "avoid distortions in the fixing of the exchange rate because of the oversupply of dollars from the sources of financing for the fiscal deficit."
At the end of 2018 and the beginning of 2019, the dollar price against the Colon reported an upward trend, but from February 6 to mid-June 11, there has been a fall of up to 26 colones per dollar.
The decline in exports of the agricultural sector reported in the first quarter, coupled with the lack of rainfall, has caused that the beginning of the year has not been the best for businessmen in Costa Rica.
Figures from the Costa Rica Foreign Trade Promoter report that between the first quarter of 2018 and the same period in 2019, exports from the agricultural sector were down by $107 million.
During the first three months of the year, sales of Costa Rican goods abroad totaled $2.757 million, just 0.5% above the $2.744 million reported as of March 2018.
The most updated data of the Foreign Trade Promoter (Procomer) specify that from January to March of this year the exports of companies in free trade zones registered a 12% year-on-year increase, and in the case of foreign sales of products in final regime fell 9%.
The increase in Costa Rican exports during 2018 was mainly due to the performance of the 187 companies in the free zone, in contrast to the almost zero growth reported by companies exporting under the traditional scheme.
Figures from the Foreign Trade Promoter of Costa Rica (Procomer) detail that last year Costa Rica's exports totaled $11.312 million, 6% more than that recorded in 2017.
Despite the recent announcement by a Costa Rican company about the future of the operation of the Cargo ferry between El Salvador and Costa Rica, as planned, the service is still not operating and may never do so.
The option of maritime cargo transport emerged again with the objective of minimizing part of the impact that the Nicaraguan crisis has had on intraregional trade. That is why in July the governments of Costa Rica and El Salvador announced that they were already able to begin ferrying operations. See "Cargo Ferry Between La Union and Caldera Back on the Table"
The complex economic and political situation that has affected Nicaragua since April continues to affect Central America, where exporters report losses of $45 million.
In the past months, cargo transport faced difficulties in moving goods along Nicaragua's highways due to demonstrators' blockades and insecurity, seriously affecting Central American companies.
The Costa Rican company Desacarga will be the authorized company to provide, from September, a maritime cargo service between the Salvadoran port of La Unión and Caldera, in Costa Rica.
Monica Segnini, CEO of Desacarga, told Elmundo.sv that "... the company is 'finalizing the final details to start operating the ferry in September', which, she explained, will offer a cargo and passenger transportation service both on the Pacific coast, and on land borders."
In Costa Rica, the productive activity of agricultural goods destined for domestic consumption has been stayed low in recent years, despite the fact that most benefit from the protection afforded by the tariffs imposed on imports of some similar goods.
The Central Bank of Costa Rica calculates the Monthly Index of Agricultural Activity (Imagro), which includes an item called "agricultural products", which monitors the production of basic grains, cereals, pulses and other oil seeds, vegetables, roots and tubers, cane, coffee and fruit trees, which are usually intended for domestic consumption.